Episode 60 Q

[James G.]

Listening to BP podcast Episode 60, with Serge Shukhat, raised the following question. (Great podcast BTW) My market, South Florida, has experienced similar conditions to what Serge described of his market; i.e. prices for residential investment properties have increased to levels that leave little room for a return. CAP rates and vacancy rates have no room for further compression and rents have already increased with little upside remaining. My question is: 1. Which philosophy do the BP investors abide by and why: A. Pivot with what the market gives; changing investment criteria as you go B. Go with what you know; a well defined criteria with little variation

[Bill Gulley]

I'm not a big "pod" listener, reason may be obvious. Here is a fact, when you specialize and stay in one facet you miss deals. How much you bounce around depends on your market. Opportunities come and go regardless of market conditions. If you hold properties you can get to a point that it becomes a full time job and it can be your best use of your time and profits/earnings, can't really ignore your bread and butter. That's fine too.

The better versed you are in RE the more opportunities, the more deals, the more money you make. You could own 100+ apartment units, if you want to work there is nothing preventing you from flipping a house, doing a wholesale deal, do a lease option on an office warehouse or funding transactional loans.

Want to grow faster? Don't be a one trick pony. :)